← Back to all topics

The Composting Secret That Just Won a $700 Million Bet from the USDA

What 3,000 composters at COMPOST2026 know that most farmers don't.

The Sacramento Gathering

From February 25-28, 2026, Sacramento will host COMPOST2026—the annual conference of the US Composting Council. Over 3,000 composters, researchers, and policymakers will converge to discuss one thing:

How compost went from "waste management" to a $700 million USDA priority.

The Shift

For decades, compost was treated as a byproduct—something to do with yard waste and food scraps. Now, it's biological infrastructure. The USDA is betting $700M on regenerative practices, and compost is at the center.

The USDA Regenerative Pilot Program

In 2025, the USDA launched its most ambitious regenerative agriculture initiative to date:

  • $700 million commitment to farms transitioning to regenerative practices
  • Compost application is a primary qualifying practice alongside cover cropping and no-till
  • Payments tied to carbon sequestration and measurable soil health improvements
  • Multi-year contracts ensuring farmers can commit to long-term soil rebuilding

This isn't a grant program. It's a recognition that the USDA's traditional "more inputs = more yield" model has failed. Soil health is now policy.

What Makes Compost Different?

Why is the USDA prioritizing compost over synthetic fertilizers? Three reasons:

1. Carbon Sequestration

Compost locks carbon into soil for decades. Synthetic fertilizers release CO2. Every ton of compost applied removes approximately 0.5 tons of CO2 equivalent from the atmosphere.

2. Biological Activation

Compost delivers billions of beneficial microorganisms. These microbes rebuild the soil food web, making nutrients bioavailable and suppressing disease.

3. Water Retention

In drought-prone regions like Arizona, compost's ability to increase water-holding capacity by 20,000+ gallons per acre per inch applied is game-changing.

Arizona's Role: The AZCC Connection

The Arizona Composting Council (AZCC) is sending representatives to COMPOST2026. Here's why it matters locally:

  • Local sourcing: AZCC members produce high-quality compost from Arizona's organic waste streams
  • Desert-adapted practices: Arizona composters understand the unique challenges of alkaline soils and extreme heat
  • Policy advocacy: AZCC works with state agencies to promote compost use in agriculture and land restoration
  • Education: AZCC provides training on proper compost application for Arizona growers

The Industry Secret

Here's what the 3,000 attendees at COMPOST2026 know that most farmers don't:

Compost isn't fertilizer. It's biological infrastructure.

You don't apply compost to feed plants. You apply it to rebuild the soil ecosystem that feeds plants for you. Once that ecosystem is healthy, your fertilizer costs drop by 30-50% because the soil does the work synthetic inputs used to do.

This is why the USDA is investing $700M. Regenerative farming isn't idealism. It's economics.

How to Access USDA Funds

Want to participate in the USDA Regenerative Pilot Program? Here's the process:

  1. Baseline soil testing: Document current soil health (organic matter %, microbial biomass, carbon content)
  2. Submit regenerative practice plan: Outline compost application rates, timing, and expected outcomes
  3. Commit to 3-5 year timeline: Soil health improvements take time; USDA requires multi-year participation
  4. Annual verification: Third-party soil testing to confirm carbon sequestration and biology improvements
  5. Receive payments: Based on verified carbon sequestration and practice compliance

COMPOST2026 Highlights to Watch

Key sessions at the conference that will shape the industry:

USDA Policy Updates

Latest on regenerative program funding, eligibility, and payment structures

Compost Quality Standards

New testing protocols for measuring biological activity and nutrient content

Regional Case Studies

Success stories from desert Southwest growers using compost in challenging conditions

Carbon Markets

How to monetize carbon sequestration from compost application

Learn More: AZCC Reports from COMPOST2026

The Arizona Composting Council will publish detailed reports from COMPOST2026, including:

  • USDA program updates and Arizona-specific opportunities
  • Best practices for desert composting and application
  • Networking opportunities with regional compost producers
Join AZCC Mailing List